home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

WA, NJ Mortgage Firms Seek Bankruptcy Protection

Partner Mortgage winding down, Milestone Capital hopes for merger

October 2, 2003


Mortgage lenders on both U.S. coasts fell prey to economic hardships and announced filing for bankruptcy.

Partner Mortgage Corp., a Mercer Island-based private mortgage fund, petitioned for Chapter 11-bankruptcy protection Friday in the U.S. Bankruptcy Court in Seattle, Wash., due to a rugged commercial real-estate market, the Seattle Times reported.

Meanwhile, Milestone Capital Inc., a self-described diversified financial services company, also filed a Chapter 11 petition, in the U.S. Bankruptcy Court in Newark, N.J., according to an announcement released Monday. The company said it sought bankruptcy protection for itself and that of its subsidiary, Elite Agents Mortgage Services Inc., after suffering capital losses over two years of unfinished merger negotiations.

Gary Craig, president and founder of Partner Mortgage, did not return requests for an interview from MortgageDaily.com but, according to the Times, specified the company has 300 partners who each invested $100,000. Two years ago, the company started lending money to commercial property owners as opposed to its usual market, single-family property owners who put up their property as collateral, the story said. The commercial mortgage losses caused trouble.

Assets of $80 million, 40 repossessed properties, and two unsecured creditors were reported for the Mercer Island lender, according to the Times. Partner cited estimates of $50 million to $100 million for both debts and assets, the court clerk told MortgageDaily.com, while the number of creditors ranged from 200 to 999.

"It's premature to tell how the bankruptcy will proceed," Partner Mortgage attorney Shelly Crocker told MortgageDaily.com in a phone interview. "The company's goal is to provide the highest return to its note holders."

Investors will reportedly get 80 cents back for every dollar invested, the Times said.

"The outlook for a recovery in the commercial real estate market is not promising," Craig reportedly said in a story published by the Puget Sound Business Journal. The company sought investors' approval to "wind down" the commercial portfolio of loans in a timely manner, the story said.

On the other hand, Milestone is continuing their business plan to merge, said company attorney William Katchen in a phone interview.

While Milestone "was unable to replace the capital it lost in its operation…the company hopes that transaction will be done," added Katchen. He said it has other business plans in the works, including a pending patent for software. By choosing Chapter 11, Katchen said it seeks external capital for another transaction to facilitate its restructuring out of bankruptcy.

Katchen said the New Jersey-based company's senior management worked over two years without any type of compensation to achieve the merger transaction.

"The same management still believes in the company, in its future and is still working after Chapter 11 without compensation," Katchen said. "It is the company's hope" to emerge from bankruptcy.

Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders